JOHOR BAHRU, Johor Plantations Group Bhd (JPB) is working on boosting its crude palm oil (CPO) production by approximately 30 per cent from its current annual production of 300,000 tonnes.
Managing director Mohd Faris Adli Shukery said that the company has not set a specific timeline to achieve the target, which will require an additional 500,000 tonnes of fresh fruit bunches (FFB).
‘While we are considering production expansion, this may not necessarily involve land acquisition. Our focus is on increasing CPO production, and we can source crops from elsewhere.
‘We currently operate 60,000 hectares of palm oil estates in Johor, with an additional 1,500 hectares in Pahang. However, all processing activities remain in Johor,” he told reporters during a recent familiarisation tour.
He said that the company processes around 1.5 million tonnes of FFB annually, with about 400,000 tonnes coming from smallholders.
‘We hope to increase this and eventually achieve a 50-50 ratio, with 50 per cent coming from our cr
op and 50 per cent from the smallholders,” he said.
Mohd Faris highlighted that JPB’s clientele includes many multinational companies, particularly from Europe.
‘Our clients are drawn to our palm oil due to our strong sustainability credentials and certification from the Roundtable on Sustainable Palm Oil (RSPO), where we are among the pioneers.
‘Our ambition is to be a niche player, known for sustainability, quality, and origin, so when we present Johor-produced palm oils to the global market, JPB commands a premium price,’ he added.
Source: BERNAMA News Agency
